John Lennon once said, “Before Elvis there was nothing.” You’d imagine that inventing everything, at least in Lennon’s words, comes with a hefty price tag. Unfortunately, for Sun Records, it’s a story akin to Newell’s Old Boys having to sell Leo Messi to Barcelona: when the big guys come a-knocking, you just have to answer the call and take what you can get. The $35,000 fee might not sound like a lot in retrospect but taking a risk on a fledgling talent changing the world and holding out for more was too perilous.
We all know what happened to Elvis’ finances at the hands of Colonel Tom Parker, but what of Sun Records’ side of the story once ‘The King’ left the building and signed for RCA? Well, if you adjust the figure for inflation, the deal scored the little Memphis music mogul, Sam Phillips, a tidy $389,000—it might not make you a tycoon, but it could snap you up a fine country home.
At the point of sale, Elvis only had one year left on his contract anyway. Anticipating that big labels would come fishing, Phillips had already been eyeing up what he could possibly do with the funds. He didn’t look far beyond Memphis mind you. Staying close to home, Phillips decided to invest his money in a local hotel chain.
With the world changing and Memphis making a name for itself as a cultural hotspot, Phillips figured that more people would be vacationing in the future, and a fair few of them would be flocking to Tennessee. The name of that little hotel chain, well, it was the Holiday Inn. Before the pandemic struck, the hotel empire was grossing an annual revenue of $6.5 billion.
Now, there are nearly 1200 Holiday Inns around the world. That might not be as ubiquitous as the pervading influence of Elvis Presley, but it’s not a bad trade for one year of his contract. Thanks to ‘The King’, Phillips earned himself a fortune and built a small business empire of subsidiary labels, music cafes, broadcasting companies, and other passion projects on top of his shrewd investments.
What did he do with his subsequent millions? Well, one of his key contributions to the world beyond affordable accommodation was campaigning in a similar manner to his protégé. From his now lofty position, Phillips aimed to break down racial barriers in the music industry, backing campaigns, supporting ethnic artists, and promoting egalitarianism for all.
He sold the historic Sun Records to Shelby Singleton in 1969, but in its time, it welcomed the Million Dollar Quartet—the esteemed progenitors of modern music consisting of Elvis, Jerry Lee Lewis, Carl Perkins, and Johnny Cash. Perhaps the highest privilege of his trailblazing life was being able to sit in on these holy sessions. Good luck comes to those who keep an eye out for it.
